Industry Insights

The global aerospace parts manufacturing market size was estimated at USD 877.0 billion in 2018. It is expected to expand at a CAGR of 3.9% from 2018 to 2025. Increasing demand for commercial aircraft owing to the rise in fleet replacement to retire aging aircrafts with new-generation, lightweight, and fuel-efficient aircrafts is anticipated to drive the growth.

Energy cost continues to be the most significant expense in aircraft operations, thus impelling the replacement of in-service aircrafts with superior fuel-efficient ones. This is anticipated to create tremendous opportunities for the market players. In addition, technological advancements and increased need for aircrafts designed for specific missions are expected to further drive the market.

U.S. emerged as the biggest market for aerospace parts manufacturing in 2018. The trend is expected to continue over the forecast period owing to the presence of a large aircraft manufacturing base. Rise in demand for critical aircraft parts, such as wings and fuselage are sourced from U.S. on account of airworthiness and technological ability to produce high quality products. This is predicted to benefit the U.S. market.

The aircraft parts are supplied to multiple entities including aircraft manufacturers, airlines, and Maintenance, Repair and Operations (MRO) service providers. The manufacturers are involved in the production processes and produce up to 35% of the components in-house to retain the competitive advantage. They source the remaining through third party production.

The market is moving towards the incorporation of lightweight materials in an attempt to improve the cost-efficiency and performance of the aircrafts. It is witnessing an increasing use of aluminum alloys, such as Titanium Aluminide (TiAl) and Aluminum Lithium (AlLi) for manufacturing aircraft engines, owing to the ability of these materials to retain strength and resist corrosion at high temperature.

The U.S. government imposed heavy tariffs of 25% on the aircraft parts manufactured in China, which is expected to boost the production in U.S. In addition, the government also placed anti-dumping duties on steel and aluminum imported from China, which may increase the manufacturing cost in the country.

Product Insights

Aircraft manufacturing is expected to dominate the market over the forecast period. However, production of insulation components represents the strongest growth and is expected to continue with the trend in the foreseeable future. Additive manufacturing is gaining attraction, owing to its benefits, such as low-cost and reduced errors.

Engine is one of the most significant parts of an aircraft that provides necessary thrust to the machine to travel in the air. It makes up close to 20% of the total cost of and aircraft. The use of innovative technologies such as additive manufacturing to produce aero engines is expected to minimize the manufacturing errors and to simplify the assembly.

Aircraft manufacturing leads the market and is estimated to reach USD 579.04 billion by 2025. The segment comprises production and assembly of a complete aircraft, including aerostructure, development of aircraft prototypes; significant modifications, and complete aircraft overhaul and rebuilding.

Avionics encompasses electronic aircraft systems, such as fly-by-wire or fly-by-light flight controls, system monitoring, anti-collision system, and pilot interface systems. The demand for avionics generally follows overall aircraft manufacturing sector. However, growth in MRO services is anticipated to boost this demand, thereby driving the production rate.

End-use Insights

Commercial aircraft led the market, which includes passenger, freight, and cargo aircraft. The global demand for commercial passenger and cargo fleet is expected to grow in line with the annual number of passengers, which is expected to double over the next two decades. However, slight decline in military expenditure may affect the demand for military aircraft, thereby limiting growth of the market.

Commercial aircraft held the largest share of the aerospace parts manufacturing market and accounted for USD 450.2 billion in 2018. Significant changes are being incorporated in the structure of commercial aircraft to reduce carbon emissions, which is expected to boost the manufacturing of lightweight parts over the forecast period.

Growing demand for business aircrafts can be attributed to factors such as increased mobility and improved efficiency. Business aircrafts boost productivity, as air travel requires less time compared to other modes of travel. This is expected to drive the segment over the forecast period.

The drones and other unmanned aerial vehicles are expected to play an essential role in the aerospace industry, which is expected to drive the demand for aerospace parts. Initiatives for outer space exploration by various governments are expected to further drive the demand over the forecast period.

Regional Insights

North America held the largest market share of more than 51.3% in 2018, owing to the presence of key players. Europe ranks second, followed by Asia Pacific, which is one of the fastest growing regions, due to the huge growth in passenger traffic.

North America is expected to account for over one-third of the global operational fleet, resulting in an increased demand for airframe and other aircraft parts over the forecast period. Ascending demand for new-generation aircraft is expected to boost growth of aircraft production industry in the region over the forecast period.

Europe has experienced improved performance against the backdrop of economic slowdown and uncertainties in recent years, owing to increase in investments in the sector. Europe is accustomed to using lighter and stronger aircraft, which is expected to drive the demand for parts made up of lightweight, high-strength, and cost-efficient materials.

Asia Pacific is estimated to be one of the fastest growing markets, owing to the growing MRO activities in the region. The region is expected to exhibit substantial growth owing to the development of manufacturing facilities by industry leaders. China is estimated to commence the operations of the largest production facilities on account of easy availability of raw materials and labor in the country.

Aerospace Parts Manufacturing Market Share Insights

The market exhibits increased competition, owing to the rising demand from aircraft manufacturing industry. It has observed a trend of collaborations among major companies to establish a joint venture for product development, to dilute or eliminate the risks and increased costs associated with the development of new aerospace products.

Due to the significant product certification requirements to meet safety regulations, the market exhibits a highly competitive landscape that restricts the entry of new players. Even though, North America and Europe have more established industry players; emerging players in Asia offering low-cost innovative solutions to the end users, are expected to disrupt the competition in the market.

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Segments covered in the report

This report forecasts revenue growth at global, regional & country levels and provides an analysis on the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global aerospace parts manufacturing market on the basis of product, application and region: